AP approves draft concession pact for Vanpic project

Hyderabad: The Andhra Pradesh Cabinet has approved the draft concession agreement for Vadarevu Sea Port in Prakasam district and Nizampatnam Sea Port in Guntur district and port-based industrial corridor collectively known as Vanpic project.

“Around 2,000 acres at Vadarevu port and a similar area in Nizampatnam port will be given of lease basis.

“The cost of private land if acquired will be initially borne by the Concessionaire and later be adjusted against the lease payable to the State Government,” Mr Anam Ramnarayan Reddy, Information and Public Relations Minister, Andhra Pradesh Government, said after the Cabinet meeting.

He added that lands belonging to the Government, including the area acquired, will be leased out on a lease basis at the rate of two per cent of the fair market value of the land leased for the first year and for every subsequent year, there shall be an escalation of 6.5 per cent a year over the previous year’s amount.

According to the Cabinet note, the concession period is for 33 years extendable by 22 years in two spells of 11 years each on mutual consent provided the port is developed as per the DPR and the performance standards are fulfilled.

“The extra five years have been given because the hinterland in the area is not yet developed like in Gangavaram and Krishnapatnam ports,” Mr Reddy said.

A memorandum of understanding was signed between the Government of Ras Al Khaimah and the State Government in March this year for the Vanpic project. A special purpose vehicle was incorporated for the implementation of the project called Vanpic Ports Private Ltd.

The Minister said that approval was given to allow ‘pavala vaddi’ (3 per cent interest) even on loans taken by members of all castes seeking to set up micro and small enterprises, including food processing units. However, the low interest would not be applicable in Hyderabad, Visakhapatnam and Vijayawada.

The total Budget requirement for the scheme is around Rs 445 crore and the requirement for the current year is around Rs 35 crore as Rs 10 crore provision has already been made in the current year.

The Cabinet also cleared 10 small castes found backward in different districts to be included in the State list of backward classes afresh to allow reservation facility to them in employment and education.

Mr Reddy said the castes of Pala-Ekari, Kurakula, Pondara, Samanthula and their sub-castes known by different names would be included in “A” category of the BC list, Lodhi and Nagaralu in “B” and Aghamudian, Beri Vysya, Arava and Ayyaraka in “D”.

The Cabinet gave nod to raise the annual income-limit for eligibility to get post-matric scholarships to Rs 1 lakh for ST students to cover 15,832 applicants additionally with a fresh commitment of over Rs 9 crore this year.

He said the Cabinet resolved to set up Andhra Pradesh University of Law at Visakhapatnam on the lines of NALSAR with branches at Kadapa and Nizamabad, each on 50 acres and with the allocation of Rs 60 crore each.

It also cleared a budget of Rs 1,100 crore to be used to benefit the farmers not covered by the Central loan waiver scheme.